How to negotiate a room block when you're unsure of numbers

Give context

You might only need a hotel to offer your delegates rooms to rest in, but providing some wider context about the event they will be attending during the day can help with negotiations.

“While exact figures may not yet be available, planners should still be prepared to outline key requirements that will help the hotel assess feasibility and hold appropriate space,” explains Danielle Ravenscroft, M&E director, Clermont Hotel Group, which has 10 hotels in London.

Those key requirements include location and facilities.

“It’s important to consider whether the hotel needs to have its own events space, be within walking distance of a specific venue, or does it need to be well connected by transport links,” adds Ravenscroft.

“The type of hotel required is key. For example, if guests have a busy schedule, premium leisure facilities may not be necessary, whereas food and beverage options could be more important for networking or convenience.”

“I would say there's never too much information that can be shared at the start because it gives the hotel the knowledge to quote effectively,” agrees Natalie Timoney, director of sales at Glasgow Marriott Hotel who always asks where the main event will be held and how many people are expected to attend.

“I like to know if it’s going to be a big association that has multiple bedroom blocks in the city. It just gives me a bigger picture of the space required. We have a huge ballroom here and while the main event might be at the SEC or the Hydro, there might be a requirement for that space for a spin-off event.”

Holding an additional event within the hotel space, such as a dinner, or awards ceremony can also give planners more bargaining power over room allocation and rates, says Timoney who also asks for historical data if the same event has been held elsewhere.

“You get a reflection of what the kind of pick up will be,” she says, adding that she’ll contact hotels in other cities if they’ve held the event before because it helps from both a practical and delivery perspective.

“I ask for insights into what worked well. We’re all part of the same industry and want to do a good job.”

If the hotel doesn't ask, James Whitaker, senior member programs manager at the Society of Petroleum Engineers (SPE), suggests planners give them an idea of who the delegates might be, so they can tailor service accordingly and do their job of being hospitable.

He says the association often welcomes students and young people with limited funds, which can make check-in awkward when they are asked for a credit card deposit for incidentals and room charges.

"Many of our international students and young people do not have access to these additional funds or credit cards, and in some cases it has resulted in students having little or no money for spending while they are at the conference, significantly impacting their enjoyment of the event," he says.

Go big or (your guests) go home

While allowing hotels to see the bigger picture puts everyone on the right track, it doesn’t address the dilemma of knowing how many rooms to block out.

Ravenscroft understands planners won’t have confirmed numbers when first making enquiries but says this can create a challenge for quoting and holding space.

“Hotels base availability and pricing on demand forecasts, and without a clear indication of volume, it can be difficult to secure an appropriate allocation. In busy markets such as London, availability can fluctuate hourly.”

She recommends planners give a realistic estimate ‘with a buffer’ and discuss flexibility options such as incremental increases, waiting lists or overflow arrangements with nearby properties to mitigate any major price rise should there be a flurry of bookings nearer the event.

“While hotels will always try to accommodate additional demand, they cannot guarantee that extra rooms will be available later at the same contracted rate. This means that underestimating initial requirements can result in higher costs or the need to source alternative accommodation.”

Providing a realistic estimate for some events isn’t an easy task for Whitaker at SPE, however.

The senior member programs manager often invites student delegates, competition winners and awards recipients from around the world to the association’s events, which can make confirming attendance tricky depending on an attendees'

“US VISA acceptance rates for students, particularly in sub-Saharan Africa, and South Asia are very poor,” he explains. “This makes last minute cancellations very frequent, as students hold out for second and third visa interviews before they finally accept they cannot attend.”

SPE’s typical approach in this instance is to pay the hotel in advance with an agreed deadline on which to withdraw rooms no longer needed.

“I usually aim for around two weeks prior to the event but depending on the size and how busy it is the hotel may push for longer.”

Timoney advises starting conversations as soon as the event is contracted, so the hotel can confirm availability. Once initial numbers are discussed, she asks organisers to share key dates in the booking lifecycle, such as when marketing collateral is being sent out, so the hotel is aware when to expect confirmation.

“It’s great to have an idea of the booking pace,” she says.

Keeping the hotel in the loop with regular updates and having a cut-off date for booking confirmation are ways to keep the relationship smooth. Without regular communication the hotel may release rooms if they think there’s a danger they won’t be able to fill rooms. 

“Another key consideration is the booking structure. Will guests’ book and pay individually from an allocated block, or will the organiser provide a full rooming list with pre-payment?,” asks Ravenscroft. “This significantly impacts contract terms, risk and flexibility.”

SPE removes the risk for hotels by taking the pre-payment option, but it also makes block bookings easier says Whitaker whose budgets typically predict for 90-100 per cent attendance.

If rooms aren’t taken, refunds are recovered after the event, ‘which can take some chasing, but is typically fine’ he adds.